'BUY' OR 'SELL' ideas by experts for Wednesday, February 08

NEW DELHI: Indian markets are expected to trade higher on Wednesday tracking positive Asian markets. However, experts feel the markets may face some selling pressure closer to 5400 level on the Nifty.

The NSE's Nifty snapped its five-day winning streak and closed in the negative terrain on Tuesday due to lack of supportive cues from global peers and as traders booked profits after the index hit important resistance levels.

"Indian markets are finding it difficult to sustain levels above 5400 on the Nifty and 17800 on closing basis for Sensex. If Nifty slips below levels of 5300 we could expect further fall in our markets otherwise the uptrend should continue," said Rakesh Gandhi, Sr Technical Analyst of LKP Securities Ltd.

There is negative divergence seen in some oscillators however, the uptrend may not reverse for some more time as long as we do not get any negative trigger.

"Based on technical patterns and averages 5265 on the Nifty and 17400 for the Sensex can be considered as important level for this rally to continue. Any fall below these levels could bring in the much awaited correction in our markets. Hence, traders need to remain very cautious and watch this level very closely," added Rakesh.

"The 5200 level, which acted as a strong resistance before, may now act as strong positional support for the market," said Siddarth Bhamre, Head-equity derivatives at Angel Broking in an ET report.

"We have witnessed heightened activity in the mid-cap segment and traders have been flocking there to make quick bucks. We may see some unwinding pressure over there where counters have shown a huge jump from lower levels," added Siddarth.